I 

112TH CONGRESS 

1ST SESSION H. R. 1474 

To require that the Federal Government procure from the private sector 

the goods and services necessary for the operations and management 

of certain Government agencies, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 12, 2011 

Mr. DUNCAN of Tennessee (for himself, Mrs. BLACKBURN, Mr. ROSS of Florida, Mr. WESTMORELAND, Mr. SESSIONS, Mr. MANZULLO, Mr. YOUNG

of Alaska, Mr. BARTLETT, Mr. MCKINLEY, Mr. LATOURETTE, Mr. 

GRAVES of Missouri, and Mrs. HARTZLER) introduced the following bill; 

which was referred to the Committee on Oversight and Government Reform 

A BILL 

To require that the Federal Government procure from the 

private sector the goods and services necessary for the 

operations and management of certain Government agencies, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Freedom from Govern5 ment Competition Act of 2011’’. 


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1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) Private sector business concerns, which are 

4 free to respond to the private or public demands of 

5 the marketplace, constitute the strength of the 

6 United States economic system. 

7 (2) Competitive private enterprises are the most 

8 productive, efficient, and effective sources of goods 

9 and services. 

10 (3) Unfair government competition with the pri11 vate sector of the economy is detrimental to the 

12 United States economic system. 

13 (4) Unfair government competition with the pri14 vate sector of the economy is at an unacceptably 

15 high level, both in scope and in dollar volume. 

16 (5) Current law and policy have failed to ad17 dress adequately the problem of unfair government 

18 competition with the private sector of the economy. 

19 (6) It is in the public interest that the Federal 

20 Government establish a consistent policy to rely on 

21 the private sector of the economy to provide goods 

22 and services necessary for or beneficial to the oper23 ation and management of Federal agencies and to 

24 avoid unfair government competition with the pri25 vate sector of the economy. 


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1 SEC. 3. DEFINITIONS. 

2 In this Act, the term ‘‘agency’’ means— 

3 (1) an executive department as defined by sec4 tion 101 of title 5, United States Code; 

5 (2) a military department as defined by section 

6 102 of such title; and 

7 (3) an independent establishment as defined by 

8 section 104(l) of such title. 

9 SEC. 4. PROCUREMENT FROM PRIVATE SOURCES. 

10 (a) POLICY.—In the process of governing, the Fed11 eral Government should not compete with its citizens. The 

12 competitive enterprise system, characterized by individual 

13 freedom and initiative, is the primary source of national 

14 economic strength. In recognition of this principle, it has 

15 been and continues to be the general policy of the Federal 

16 Government— 

17 (1) to rely on commercial sources to supply the 

18 products and services the Government needs; 

19 (2) to refrain from providing a product or serv20 ice if the product or service can be procured more 

21 economically from a commercial source; and 

22 (3) to utilize Federal employees to perform in23 herently governmental functions (as that term is de24 fined in section 5 of the Federal Activities Inventory 

25 Reform Act of 1998 (Public Law 105–270; 112 

26 Stat. 2384)). 


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1 (b) GENERAL RULE.—Except as provided in sub2 section (c) and notwithstanding any other provision of law, 

3 each agency shall obtain all goods and services necessary 

4 for or beneficial to the accomplishment of its authorized 

5 functions by procurement from private sources. 

6 (c) EXEMPTIONS.—Subsection (b) shall not apply to 

7 an agency with respect to goods or services if— 

8 (1) the goods or services are required by law to 

9 be produced or performed, respectively, by the agen10 cy; or 

11 (2) the head of the agency determines and cer12 tifies to Congress in accordance with regulations 

13 promulgated by the Director of the Office of Man14 agement and Budget that— 

15 (A) Federal Government production, man16 ufacture, or provision of a good or service is 

17 necessary for the national defense or homeland 

18 security; 

19 (B) a good or service is so inherently gov20 ernmental in nature that it is in the public in21 terest to require production or performance, re22 spectively, by Government employees; or 

23 (C) there is no private source capable of 

24 providing the good or service. 


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1 (d) METHOD OF PROCUREMENT.—The provision of 

2 goods and services not exempt by subsection (c)(1) or 

3 (c)(2) shall be performed by an entity in the private sector 

4 through— 

5 (1) the divestiture of Federal involvement in the 

6 provision of a good or service; 

7 (2) the award of a contract to an entity in the 

8 private sector, using competitive procedures, as de9 fined in section 152 of title 41, United States Code, 

10 and section 2302 of title 10, United States Code; or 

11 (3) conducting a public-private competitive 

12 sourcing analysis in accordance with the procedures 

13 established by the Office of Management and Budg14 et and determining that using the assets, facilities, 

15 and performance of the private sector is in the best 

16 interest of the United States and that production or 

17 performance, respectively, by the private sector pro18 vides the best value to the taxpayer. 

19 (e) CONTRACTED ACTIVITIES.—The head of an agen20 cy may utilize Federal employees to provide goods or serv21 ices previously provided by an entity in the private sector 

22 upon completion of a public-private competitive sourcing 

23 analysis described in subsection (d)(3), and after making 

24 a determination that the provision of such goods or servVerDate Mar 15 2010 19:07 Apr 13, 2011 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1474.IH H1474

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1 ices by Federal employees provides the best value to the 

2 taxpayer. 

3 (f) REGULATIONS.—The Director of the Office of 

4 Management and Budget shall promulgate such regula5 tions as the Director considers necessary to carry out this 

6 section. In promulgating such regulations, the Director 

7 shall assure that any State or territory, or political sub8 division of a State or territory, complies with the policy 

9 and implements the requirements of this section when ex10 pending Federal funds. 

11 SEC. 5. STUDY AND REPORT. 

12 The Director of the Office of Management and Budg13 et, in conjunction with the Comptroller General of the 

14 United States, shall carry out a study to evaluate the ac15 tivities carried out in each agency, including those identi16 fied as commercial and inherently governmental in nature 

17 in the inventory prepared pursuant to the Federal Activi18 ties Inventory Reform Act (Public Law 105–270; 31 

19 U.S.C. 501 note) and shall transmit a report to the Con20 gress prior to June 30 of each year. The report shall in21 clude— 

22 (1) an evaluation of the justification for ex23 empting activities pursuant to section 4(c); and 

24 (2) a schedule for the transfer of commercial 

25 activities to the private sector, pursuant to section 


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1 4(d), to be completed within 5 years after the date 

2 on which such report is transmitted to the Congress. 

Æ 


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